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For a culture, a low score in the _____ reflects more egalitarian views. A. Power Distance Index B. Individualism/Collectivism Index C. Distance from English Index D. Uncertainty Avoidance Index E. Masculinity/Femininity Index Which of the following statements about advertising laws […]

Cultures low in Uncertainty Avoidance Index take a more empirical approach to understanding and knowledge. Since expatriates are not locals, they often have a negative effect on the prestige of the company and its product line in the eyes of […]

Recording of historic events by historians belonging to different cultures gives us a subjective view of history. Using foreign-country middlemen moves the manufacturer away from the market and the company becomes less involved with problems of language, physical distribution, communications, […]

The Individualism/Collective Index, identified by Geert Hofstede, refers to the preference for behavior that promotes one’s self-interest. Economic growth is measured solely in economic goals. Answer: FALSE Economic growth is measured not solely in economic goals but also in social […]

In the context of international business negotiations, collectivistic, high-context cultures do not consider personalities and substance as separate issues. In the context of motivating sales personnel, expatriate managers fear that they will lose opportunities for promotion because they will be […]

Export management companies work under their own names. Though quality is always important in the consumer’s mind, in general, do not expect it to be a given. Answer: FALSE Since the consumer expects performance quality to be a given, quality […]

Deflation causes consumer prices to escalate, and consumers face ever-rising prices that eventually exclude many of them from the market. For most companies, trade shows and direct selling are the major components in the marketing communications mix. Answer: FALSE For […]

In the context of distribution patterns, wholesaling shows a greater diversity in its structure than does retailing. In the context of blocked currency, blockage is accomplished by refusing to allow an importer to exchange its national currency for the currency […]

Goods are likely to be standardized if: A. they are being produced by the same firm. B. the cost of producing each unit is the same. C. their uses are the same across markets. D. they are being sold to […]

Political and legal forces, economic climate, and competition are some of the domestic environment’s controllable factors. Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism. Answer: TRUE Economists in general recognize only […]

A majority of services enter foreign markets by licensing, franchising, or direct investment. Foreign investment can be perceived as a threat to sovereignty. Answer: TRUE Foreign investment can be perceived as a threat to sovereignty and thus become a rallying […]

One of the most important aspects of LAIA that differs from LAFTA is the differential treatment of member countries according to their level of economic development If a product is culturally sensitive, then decisions related to the product are more […]

The self-reference criterion is closely related to ethnocentrism. In a traditional distribution structure, distribution systems are national rather than local in scope. Answer: FALSE In the traditional distribution structure, distribution systems are local rather than national in scope. In the […]

Consumers in America tend to respond to rating scales more conservatively than Japanese. The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives. […]

The Export Trading Company Act allows producers of similar products to form export trading companies in the U.S. In the Treaty of Amsterdam (1977), the European Union agreed to accommodate the changes brought about by the monetary union and the […]

The single most important activity of international business negotiations is oration. Cultures with high Uncertainty Avoidance Index scores tend to have a low level of anxiety and stress. Answer: FALSE Cultures with high Uncertainty Avoidance Index scores are highly intolerant […]

High-Power Distance Index countries are more egalitarian than low-Power Distance Index countries. According to traditional definitions, culture is transmitted from generation to generation. Answer: TRUE According to traditional definitions, culture is transmitted from generation to generation. TRUE Most traditional definitions […]

North America is the region of the world most affected by a steadily declining worker-to-retiree ratio. The support services component of the product component model contains such items as repair and maintenance and availability of spare parts. Answer: TRUE The […]

Islamic law prescribes specific patterns of social and economic behavior for all individuals. A company in the “no direct foreign marketing” stage of international marketing involvement does not actively cultivate customers outside national boundaries. Answer: TRUE A company in the […]

The majority of business customs fit into the cultural elective category. The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer. Answer: FALSE The channel process includes all activities, beginning with the manufacturer and […]

According to James Day Hodgson, former U.S. ambassador to Japan, culture is like a “thicket” that is tough to get through, but effort and patience often lead to success. Subornation payments accompany requests for a person to do a job […]

The laws regulating direct selling in China are unusually detailed compared to others around the world. Deflation results in ever-decreasing prices, creating a positive result for consumers, but both put pressure to lower costs on everyone in the supply chain. […]

One of the consistencies that marketers can look forward to when marketing products abroad is that almost all labeling laws worldwide are essentially the same. Setting the right price for a product can be the key to success or failure […]

The U.S. Department of Commerce has mandated that all U.S. government purchases are conducted using the metric system. The process of evaluating the uncontrollable elements in an international marketing program involves substantial doses of cultural, political, and economic shock. Answer: […]

In the context of the distribution structure in Japan, it has been observed that Japanese consumers favor cheaper prices over personal service. The statements made by the parties during conciliation may be used as evidence in the subsequent litigation. Answer: […]

With respect to global marketing management, the argument for market segmentation in the 1980s was framed as _____. A. globalization versus localization B. standardization versus adaptation C. adaptation versus one-to-one marketing D. globalization versus one-to-one marketing E. standardization versus localization […]

Consumer perceptions of a quality product often have more to do with market-perceived quality than performance quality. When a message from the source is converted into effective symbolism for transmission to a receiver, the message is said to have been […]

Even small changes in consumer demand can sharply affect industrial demand. In static economies, consumption patterns change rapidly. Answer: FALSE In static economies, consumption patterns become rigid, and marketing is typically nothing more than a supply effort. In a dynamic […]

Which of the following represents a severe limitation when the Internet is used for primary research? A. The cultural background of the respondents cannot be identified accurately. B. The educational qualifications of the respondents cannot be identified accurately. C. The […]

A customs union is the most fully integrated form of regional cooperation. Countries that suffer the most from major natural calamities are among the poorest in the world. Answer: TRUE Countries that suffer the most from major calamities are among […]

In the context of international business negotiations, age and experience are known to affect the negotiation behaviors of individuals. The form of law found in the United States and England is classified as civil or code law. Answer: FALSE Common […]

The Uncertainty Avoidance Index (UAI), one of the four dimensions of culture, identified by Geert Hofstede, focuses on assertiveness and achievement. In the United States, a patent reverts to public domain if it is not produced within a specified period. […]

Big emerging markets are of major political importance within their regions. A fundamental premise of Japanese ideology reflects the importance of individualism and competitive spirit for economic progress. Answer: FALSE A fundamental premise of Japanese ideology reflects the importance of […]

Which of the following factors often gets in the way of American team negotiations? A. A cultural heritage of interdependence and collectivism. B. Emphasis on careful note taking and training via observation. C. Compensation schemes overly emphasizing individual performance. D. […]

One of the three variables,which affect the rate of diffusion of a product,is the product’s degree of perceived newness. The uncontrollable factors affecting international marketing are limited to political forces, economic climate, and competitive structure. Answer: FALSE Refer Exhibit 1.3-The […]

International advertisers use foreign national consumer magazines extensively because they have dependable circulation figures. Traditional channels in developing countries evolved from economies with a strong dependence on imported manufactured goods. Answer: TRUE Traditional channels in developing countries evolved from economies […]

The United States and other countries require some products to contain a percentage of “local content” to gain admission to their markets. In some countries, language is itself thought of as a social institution, with no relation to political importance. […]

Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to […]

Easy accessibility of volumes of up-to-date secondary data is the biggest advantage that Internet now provides to international marketing researchers. Trade shows are important channel of advertising for consumer goods. Answer: FALSE In addition to advertising in print media and […]

In Europe, work councils are involved in setting compensation rules for sales people. The perception of quality, as perceived by highly industrialized and less-industrialized countries, is basically the same. Answer: FALSE Recent studies have demonstrated that perceptions of industrial product […]

Which of the following behaviors of the Spaniards reinforces the view that Spanish negotiators use a high percentage of commands? A. Extensive use of silent periods. B. Highest incidence of touching another negotiator. C. Greeting callers on the phone with […]

To be a success in the marketplace today, the best companies will focus on country as the primary segmentation variable. The Organization for Economic Cooperation and Development (OECD) has estimated that the economies of the developed world will expand at […]

Full-cost pricing is an approach to pricing that emphasizes that one unit of a product be different from the other and must, therefore, be priced differently. Spreading the portfolio of markets served brings important stability of revenues and operations to […]

A country is able to leap several stages of economic development by using technology as economic leverage. For selling in relationship-oriented countries, a sales force consisting of American expatriates proves to be most efficient. Answer: FALSE Selling in information-oriented cultures […]

A product that exceeds performance expectations can also be considered to be of poor quality. Political and legal issues a company may face abroad are mitigated by the “alien status” of the company. Answer: FALSE Political and legal issues a […]

An important objective of the member states of the United Nations is bringing about mutual economic development. Quotas are more flexible than import licenses. Answer: FALSE The fundamental difference between quotas and import licenses as a means of controlling imports […]

A single company can directly control or alter the political environment of the country within which it operates. The behavior of channel members in the distribution process is the result of the interactions between the cultural environment and the marketing […]

Joint ventures are similar in structure and organization to minority holdings by a multinational company (MNC) in a local firm. The decisions taken by the World Trade Organization in solving trade disputes among members are binding ones. Answer: TRUE The […]

Centralization of the marketing research ensures that the field personnel and resident managers have more intimate knowledge of the subtleties of the market. The degree of economic development can be used as a rough measure of a country’s industrial market. […]

In difficult economic and political circumstances or otherwise, online trade shows are a perfect substitute for physical trade shows or trade fairs. The first stage of the business negotiation process is nontask sounding, which includes all those activities that might […]

In the context of the effect of values on international business negotiations, the Japanese tend to emphasize hierarchical relationships that leads to hampered internal communications. In a free trade zone, payment of import duties is postponed until the product leaves […]

Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit. In the context of international advertising, search engines have now become crucial directors of Internet users’ attention. Answer: TRUE […]

An important first step in adapting a product to a foreign market is to determine: A. the degree of newness as perceived by the intended market. B. the economic climate of the target market. C. the advertising parallels with the […]

Research has shown that commitment of workers to their companies tended to be higher in countries: A. higher in individualism and lower in power distance. B. higher in collectivism and lower in individualism. C. lower in individualism and higher in […]

Ten high-technology companies joined forces to produce and market their products in China. By joining together, these companies were able to enter the Chinese market for the first time. A good name for this type of arrangement is a consortium. […]

In the context of international business negotiations, when faced with a complex negotiation task, most Asians divide the large task up into a series of smaller tasks. French business negotiators use the lowest percentage of self-disclosure yet, they also use, […]

Utilitarian ethics is the ethical principle that focuses on the optimization of the “common good.” Marketers with little or no understanding of a religion may readily offend deeply because the influence of religion is often quite strong. Answer: TRUE The […]

The reserves account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries. In the context of planning for global markets, the planning process is a primary medium of organizational learning. Answer: TRUE The […]

A country has reached a level of economic development where there is focus on manufacturing of both semidurable and nondurable consumer goods. Also, the goods demanded relate to equipment and supplies to support manufacturing. Which of the following stages of […]

As cultural and political scenario varies so widely across nations, there is absolutely no way to generalize tendencies for products to be politically sensitive. Age and gender have been the most obvious international market segmentation variables, particularly for Americans. Answer: […]

The growth of free trade areas that are tariff-free among members but have a common tariff for nonmembers creates an opportunity that can be capitalized on by direct investment. Nongovernmental organizations affect the policy decisions made by governments. Answer: TRUE […]

The principal agency that supports U.S. business abroad is the Department of Commerce (DOC). Harry Jordan’s company has just entered into an agreement with a German firm that will create a separate legal entity. This new firm will be allowed […]

Mercosur is the largest common-market agreement in the Americas. In the context of international advertising, an advertiser must consider local variations when choosing an appropriate medium. Answer: FALSE In international advertising, an advertiser must consider the availability, cost, coverage, and […]

Country X is likely to be in the age of mass consumption according to Rostow’s five-stage model of economic development if: A. its economy is primarily driven by natural resource extraction. B. the economy is moving away from agriculture and […]

In the context of inventive international negotiations, which of the following is an obstacle to invention for Japanese society? A. Individualism B. Civility C. Lack of natural resources D. Hierarchy E. Relative isolation All of the following are specific objectives […]

As the prices for the same good are equal in different markets, a product sold in one country may be exported to another and can undercut the prices charged in that country. As countries move from agricultural to industrial to […]

The shipping companies collect the taxes for products that are sold by a company through the Internet to customers outside its home country. Political and social activists have no impact on the normal flow of trade. Answer: FALSE Although not […]

The marketing process substage in the United States economy from 1950 to the present is mass production. The most managerially useful aspect of the synthesis of cultural differences is that it allows us to make predictions about unfamiliar cultures. Answer: […]

An international salesperson must have a high level of flexibility when working in a foreign country or in the home country. A majority of the population of less developed countries can be reached readily through the traditional mass medium of […]

The WTO is wholly dedicated toward making trade among nations more efficient. Only a limited number of American high-caliber sales personnel are willing to live abroad for extended periods of time as expatriates. Answer: TRUE Only a limited number of […]

It is generally better to collect primary data before turning to secondary data. Which of these levels of economic integration lacks only political unity to become a political union? A. Common market B. Free trade area C. Regional cooperation group […]

In 1600, _____ were brought from South America to Europe, where they quickly spread to the rest of world and become a staple of agricultural production. A. tomatoes B. potatoes C. shallots D. peanuts E. eggplants Which of the following […]